Economic optimization of smart distribution networks considering real-time pricing

Abstract

With the development of smart meters, a realtime pricing (RTP) demand response is becoming possible for households in distribution networks. The power flow can be bidirectional in distribution networks which become smarter with distributed generators (DGs). It is expensive to import electricity from the generation far from load centers because of the cost of power loss and network use, so that it is more economical to use electricity generated by local distributed generators. Therefore, in order to curtail operating costs of distribution networks, this paper proposes a model of economic optimization conducted by distribution network operators. The electricity purchasing costs for distribution network operators are minimized by optimizing electric power from transmission systems and local distributed generators. Further, based on price elasticity, the formulations of load demand considering RTP are proposed with economic optimization of distribution networks. The economic optimization problems are resolved by an interior point method. The case study shows that peak load demand can be reduced about 3.5% because the household RTP and electricity purchasing costs of distribution network operators can save 28.86 £ every hour.

Research Advancements Towards in Existing Smart Metering over Smart Grid

“…Hence, financial optimization becomes the sole factor for live billing process. Study in such direction was carried out by Zhang et al [33]. The technique presented by the author exploits the electrical power exclusively for local distributed generators.…”

Integrating Renewable Energy Sources to an Urban Building in India: Challenges, Opportunities, and Techno-Economic Feasibility Simulation

“…Adoptability of communication technology, load management technology, and protection strategies to microgrid were discussed. Hong Zhang et al [6] presented an economic optimization model to minimize energy purchase costs for distribution system operators by using interior point method. Wang et al [7] presented possible operating scenarios for standalone microgrids by considering the daily patterns of load and wind profiles using clustering techniques.…”

Optimal Economic–Environmental Operation of BESS in AC Distribution Systems: A Convex Multi-Objective Formulation

“…Including BESS in electricity distribution networks is a complex task in terms of control and optimization. For control, efficient energy management strategies must be designed considering non-linear characteristics of the converters that interface them with the electrical grid, which requires applying non-linear control methods for an adequate operation of BESS and their local and or global dynamic stability [13,14]. Some of the control methods that are applied to BESS systems include sliding mode control [15], passivity-based control [16], exact feedback linearization [17], fuzzy logic [18,19], neural networks [20], and classic proportional-integral-derivative (PID) controllers [21], among others.…”